Explanation of bone dry metric ton

 

Lets start with a useful converter:

 

http://www.forestbusinessnetwork.com/green-ton-converter/

 

 

In international wood chip trade it is very important for the parties (suppliers and buyers) to talk about the same units. The wood chip trade for paper pulp and for mdf production is done in "bone dry metric ton". 

 

Bone dry means 0% moisture content in the product.

Metric ton means 1000 kg (as SI unit for mass

 

1 bone dry metric ton (BDMT) price is the price of 1000kg of fiber. (this is just a reference unit where the moisture content of the wood chip is 0%. In practice does not exist. This price is fix)

 

1 green metric ton (GMT) is the price of 1000kg of fiber and water. (this is the actual price of the wood chip which fluctuates with the moisture content) 

 

Lets say, 

 

1 green metric ton of wood chip is 60 usd and the moisture content is 40%. 

 

It means that 1000 kg of wood chip = 600 kg fiber + 400 kg water

 

1000 bone dry kilogram = 1000 kg of fiber = 1 bone dry metric ton

 

 

 

So 

 

So 60 usd = 600kg of fiber + 400kg of water. (The value of water is 0)

 

60 usd = 600 kg of fiber = 0.6 bone dry metric ton

 

Question, what is the value of 1000kg of fibre (1 bone dry metric ton)

 

60usd/600kg= price of 1 kg fiber

 

1kg fiber = 0.1usd

 

1000kg of fibre = 100usd

 

1 bone dry metric ton is 100usd. 

 

Therefore if your bdmt price is 100usd and the moisture is 40% then you will get 60usd for 1000kg of wood chips (green metric ton) because it has only 600kg of fiber in it (and the price of 1000kg of fiber is 100usd).

 

Practical use:

 

In sales contract the parties will always agree a BDMT reference price. If the BDMT price is 100usd then the seller can receive the following green ton price after the moisture content was established:

 

20% - 80usd

30% - 70usd

40% - 60usd etc.

 

It is apparent that for the same product the seller receives higher price if the moisture content is lower. 

 

Therefore the final price is established only after the delivery of the product and measuring the moisture content.

 

When calculating freigh price, bone dry metric ton does not mean anything in transportation. So the freight from the shipping company will always mean green metric ton which must be converted to bone dry metric ton when a supplier is quoting CIF price. 

 

Loading rate or discharging rate must be given in green metric ton. Also, the volume for shipment must be given in green metric ton with the stowage factor of the commodity (cubic feet/green metric ton) 

 

For further info, write to us: projects@trademarineltd.com

 

We link producers with the end users directly. 

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